Answer:
Given: Principal(P) = $ 5000 , T = 3.5 years and R = 5%.
Using the formula of Simple Interest (I) given by;
[tex]I = \frac{P\times R \times T}{100}[/tex] .......[1] , where P is the Principal amount of money to be invested, R be the rate of interest and T be the time.
Substitute the given values of P , R and T in [1] we have;
[tex]I = \frac{P \times R \times T}{100} = \frac{5000\times 5 \times 3.5}{100}[/tex]
[tex]I = 50 \times 5 \times 3.5 = 250 \times 3.5[/tex]
Simplify:
[tex]I = \$ 175[/tex]
An Ending balance is calculated by subtracting cash outflows, interest paid for financing and principal paid on financing.
Ending Balance = $ 5000 + $ 175 = $ 5,175.
Therefore, the ending balance is $ 5,175
